A shell-shocked Kafelnikov completed a disastrous three days for top players at the opening grand slam of the year.
Top seed Lleyton Hewitt and second seed Gustavo Kuerten both lost in the first round while third seed and last year’s champion Andre Agassi withdrew injured hours before his opening match.
Fifth seed Sebastien Grosjean lost to Francisco Clavet 6-4 3-6 6-0 5-7 6-4 earlier on Wednesday while Goran Ivanisevic, seeded 10th, fell to France’s Jerome Golmard 6-3 7-6 5-7 6-4 in the night match under floodlights.
The result leaves Britain’s Tim Henman, at six, the highest seed left in a draw featuring less familiar names in unfamiliar rounds.
American Kim, ranked 230 places below world number four Kafelnikov, used his economic strokeplay and lightning speed around the court to pound the 1999 champion into submission.
He forced a backhand error to complete one of the biggest upsets of the tournament and the best victory of his short career.
The win was only the third tour level victory for the player who turned professional just last June.
It was the first time Kafelnikov has failed to reach the quarter-finals of the Australian Open since his debut in 1994.
Henman came through his second round match safely with an imperious performance to sweep aside Belarussia’s Vladimir Voltchkov 6-3 6-4 6-1.
Henman will face Greg Rusedski in an all-British showdown after Rusedski out-served home hope Mark Philippoussis in a battle of power on the Rod Laver Arena court.
Rusedski’s 7-6 6-3 6-4 victory leaves the Open without an Australian in the third round of the men’s draw for this first time ever.
Grosjean looked far from his best on Court One as he battled the tenacious Clavet.
Clavet, 33, looped the ball back time and time again and Grosjean was unable to find the big shots to finish points.
Grosjean saved one match point by making a rare foray to the net but Clavet sealed victory with a smash after three hours and 25 minutes.
The top women advanced smoothly. A subdued Venus Williams put in a lacklustre performance but still beat fellow American Kristina Brandi 6-3 6-4.
Watched by her mother Oracene and sister Serena — the fifth seed who withdrew injured before her first match on Monday — Venus ambled through the 58-minute match to set up a third round clash with 32nd-seeded Slovakian Daniela Hantuchova.
Looking bored, the number two seed rarely bothered to chase any ball that was beyond her considerable reach, preferring instead to hit winners when the ball came to her.
Third seed Martina Hingis hammered German qualifier Greta Arn 6-1 6-2 to reach the third round and keep her return from injury on track.
Hingis, Australian Open champion from 1997-99, is playing her first big tournament since tearing ligaments in her right ankle in Filderstadt last October.
Eighth seed Monica Seles joined Hingis by crushing Zimbabwe’s Cara Black 6-1 6-1 in equally ruthless fashion.
RESULTS
Men
Second round (prefix number denotes seeding):
Jerome Golmard (France) beat 10-Goran Ivanisevic (Croatia) 6-3 7-6 (7-2) 5-7 6-4; Jonas Bjorkman (Sweden) beat 24-Thomas Enqvist (Sweden) 3-6 7-5 6-4 6-2; Fernando Gonzales (Chile) beat 32-Tommy Robredo (Spain) 6-2 6-4 6-4; Alex Kim (U.S.) beat 4-Yevgeny Kafelnikov (Russia) 6-3 7-5 6-3; Kristian Pless (Denmark) beat 22-Hicham Arazi (Morocco) 6-3 6-4 6-1; 28-Greg Rusedski (Britain) beat Mark Philippoussis (Australia) 7-6 (9-7) 6-3 6-4; Stefan Koubek (Austria) beat James Blake (U.S.) 4-6 2-6 6-4 6-1 6-2; Adrian Voinea (Romania) beat Julien Boutter (France) 6-2 6-4 6-7 (5-7) 2-6 6-3; Dominik Hrbaty (Slovakia) beat 18-Albert Portas (Spain) 6-1 6-3 6-0; 12-Guillermo Canas (Argentina) beat Ramon Delgado (Paraguay) 6-2 7-5 6-7 (9-11) 6-4; Francisco Clavet (Spain) beat 5-Sebastien Grosjean (France) 6-4 3-6 6-0 5-7 6-4; 26-Jiri Novak (Czech Republic) beat Andrea Gaudenzi (Italy) 2-6 5-7 6-2 6-3 6-3; 6-Tim Henman (Britain) beat Vladimir Voltchkov (Belarus) 6-3 6-4 6-1; 21-Younes El Aynaoui (Morocco) beat Fernando Vicente (Spain) 4-6 6-3 6-3 6-3; 16-Thomas Johansson (Sweden) beat Markus Hipfl (Austria) 6-4 6-1 6-4; Taylor Dent (U.S.) beat 31-Andreas Vinciguerra (Sweden) 6-3 6-4 6-2
WOMEN:
2-Venus Williams (U.S.) beat Kristina Brandi (U.S.) 6-3 6-4; 17-Barbara Schett (Austria) beat Nuria Llagostera-Vives (Spain) 6-2 1-6 6-2; 31-Francesca Schiavone (Italy) beat Jelena Kostanic (Croatia) 6-1 6-2; 32-Daniela Hantuchova (Slovakia) beat Tathiana Garbin (Italy) 6-0 6-2; 3-Martina Hingis (Switzerland) beat Greta Arn (Germany) 6-1 6-2; 11-Silvia Farina Elia (Italy) beat Jennifer Hopkins (U.S.) 6-2 6-0; Barbara Rittner (Germany) beat 28-Anne Kremer (Luxembourg) 6-1 6-4; Nathalie Dechy (France) beat Bianka Lamade (Germany) 6-3 6-7 (4-7) 6-1; Anabel Medina Garrigues (Spain) beat 21-Daja Bedanova (Czech Republic) 6-4 6-2; 8-Monica Seles (U.S.) beat Cara Black (Zimbabwe) 6-1 6-1; Asa Svensson (Sweden) beat Conchita Martinez (Spain) 6-4 6-1; 15-Amanda Coetzer (South Africa) beat Rossana Neffa-De Los Rios (Paraguay) 6-3 6-1; Adriana Serra Zanetti (Italy) beat Amy Frazier (U.S) 6-3 7-6 (7-5); 18-Lisa Raymond (U.S.) beat Jill Craybas (U.S.) 6-3 6-3; Martina Sucha (Slovakia) beat Mariana Diaz-Oliva (Argentina) 6-1 7-5; 13-Magdalena Maleeva (Bulgaria) beat Kveta Hrdlickova (Czech Republic) 6-4 7-5—Reuters